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Certification

• Introduction to BASE®
• 1. Who is BASE®?
  2. What is an HRA?
  3. Who Qualifies for an HRA?
  4. Where do the savings come from?
• BASE® 125 Cafeteria Plan
• 1. What is a 125 Cafeteria Plan?
  2. Who is eligible for the BASE® 125 Plan?
  3. Where do the savings come from?
• BASE® Integrated HRA
• 1. What is an Integrated HRA?
  2. Who is eligible for the BASE® Integrated HRA?
  3. Where do the savings come from?
• Value of BASE®
• 1. How can BASE® products help my sales?

Section I: Introduction to BASE®

Chapter 3: Who Qualifies for an HRA? (Page 1 of 2)

Now that you know about BASE® and the basics of the BASE® HRA, Chapter 3 will explain the various business types that qualify for the Health Reimbursement Arrangement. Below, you will find a listing of business types along with qualification requirements for them. It is important to note that this listing is NOT comprehensive. If you are still not sure whether or not your client qualifies, you should contact a Benefit Specialist toll-free at 1-877-342-5105.

Sole Proprietors

Many sole proprietors are already deducting their health insurance premiums* as a personal deduction saving federal and state taxes only. Why would they be interested in the BASE® HRA? The answer is quite simple, to save even more tax dollars!

Nearly 70% of small business owners who utilize the BASE® HRA are sole proprietors. With the BASE® HRA, employers can save federal, state, and self-employment taxes on up-to 100% of their family's qualified medical expenses. These health care expenses are written off as a legitimate business deduction with an HRA.

To be eligible for a BASE® HRA, sole proprietors:

• Must be married.
• Must have a spouse who provides legitimate services to the business, even part-time.
• Must pay for all or some of the family medical expenses.

Partnerships

To be eligible for the BASE® HRA, partners in a partnership:

• Must be married.
• Must have a spouse who provides legitimate services to the business, even part-time.
• May NOT be partners with their spouse.
• Must pay for all or some of the family medical expenses.

In some cases, one partner may qualify to enroll in the BASE® HRA, while other partners are not eligible. This might occur because a partner is not married, or the spouse of a partner does not provide services to the business. Depending on the circumstances, it often makes sense to enroll the partner who is eligible for the HRA. Remember, the BASE® HRA provides substantial tax savings to your clients.

*The Affordable Care Act may not allow the reimbursement of health insurance premiums based on your business size and plan design. For additional details, please contact a BASE® Benefit Specialist.